India’s healthcare sector is on track to achieve significant growth in the coming years, with health insurance coverage projected to reach 50% by 2025. However, challenges in rural healthcare infrastructure and a shortage of trained medical professionals remain pressing concerns.
Currently, India allocates approximately 3.3% of its GDP to healthcare, with per capita spending estimated at $80. While the healthcare system is expected to undergo substantial improvements by 2030, these changes will be supported by key structural developments. These include the doubling of medical education seats, an expansion of hospital bed capacity, and a growing insurance coverage base, which, at present, covers roughly 40% of the population, according to CareEdge.
Public spending on healthcare is increasing, along with rising private sector investments, contributing to a broader transformation of the sector. Demographic shifts are also playing a role, as the population continues to grow, particularly among those aged 45 and above, whose numbers are expected to rise by 2.5% to 3% annually.
Despite these positive trends, significant barriers remain. The healthcare infrastructure in rural areas, coupled with a lack of trained medical personnel, continues to hinder access to healthcare services for large segments of the population. CareEdge Ratings forecasts considerable growth in both healthcare infrastructure and the workforce, driven by supportive government policies and a surge in demand.
In terms of health insurance, coverage has more than doubled over the past decade. By 2023, roughly 40% of the population was covered under public and private schemes. The recent extension of the Ayushman Bharat scheme to include individuals aged 70 and above is expected to push overall coverage closer to 50% by 2025, marking a significant milestone in the country’s healthcare progress.
While the outlook for India’s healthcare system is promising, continued efforts to address rural healthcare and workforce challenges will be essential in ensuring equitable access for all.
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